I get it, accounting, finance, and everything else in that sphere are very unsexy…
Sometimes I’m envious of marketing, there’s always a new way to promote or a shiny new platform to get stuck into. In accounting, the most excitement we get is budget day…
Let’s talk outsourcing – first thing’s first, I get it you want to keep costs low.
As the CEO you see any finance role as non-essential and therefore it gets the lowest budget allocation. Of course, I disagree, but let’s not argue! Let me explain how you can get an iron grip on your business finances and stay in HMRC’s good books without breaking the bank.
Consider all the potential finance functions you might need
- Accountant
- Payroll
- Raising invoices
- Cash flow forecasting
- Credit control
- Bookkeeping
You could do those all in-house, maybe you and your co-founder do it?
Maybe Tim the CTO knows how to use the payroll software?
Of course, that’s cheap in money terms sure, and it probably gets done… just. It’s not hard to use a piece of payroll software or fire off an invoice from time to time.
But it’s not really suitable for the long term. You’re not up to speed with all the reliefs, legal requirements and changes. Why should you be? it’s not your area of expertise. You’re all about growth and bringing in more money. (which btw is exactly what you should be doing)
So what else can you do?
You could hire people for each role.
That would free you up from those tasks, you’d have someone dedicated to deal with each area. Perhaps you’d only need them part-time.
Not a bad option. But consider the details.
A payroll clerk isn’t an accountant. A financial controller might do a mixture but still might have holes in their skill set and you’re potentially going to need 3 roles to fill.
What would that cost you?
Probably the best part of £90k full time, £50k part-time.
Not to mention the other costs and hassles associated with hiring staff.
- National insurance
- Pensions
- Sick pay
- Maternity
- Pensions
- Etc etc
Then you need to be able to find the right people! How do you know what a great financial controller looks like? Will, they even fit in with your culture?
Can you imagine the interview questions!
It’s just hassle, time and money that you don’t really need to be spending out.
That’s where I think outsourcing hits the sweet spot.
For a business turning over say £750k, you could outsource ALL the main finance roles to us for £25k-30k a year. Compare that to £100k for full time or £50k for part-time roles and already that’s a nice saving.
Plus you get access to an FD, more skills, we are up to date with all the rules etc. Not to mention the flexibility, (which I think is the trump card)
You can dial-up or down the service as needed.
Worldwide pandemic? Dial it down.
Just taken on ten new big clients? Dial it up to meet the demand.
Credit control, a good grip on your finances, payroll, cash flow forecasting and everything else all done for you. Fully flexible, lower cost and firmly fighting in your corner.
It’s no coincidence that successful businesses have a good strong finance function.
If you’re on the fence, thinking of hiring, maybe you’re currently doing all those things DIY, give us a call. Let’s see what you need, give you a quote and you can consider your options.